Boy Thohir: Patriot Bonds Ensure More Independent and Sustainable National Development
Key Takeaways
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JAKARTA, Investortrust.id — Danantara has launched plans to issue Rp 50 trillion in so-called Patriot Bonds with a 2% coupon, an initiative warmly welcomed by Indonesia’s top business leaders as a show of solidarity to support national development.
The bonds are designed as a voluntary corporate contribution, reflecting the spirit of gotong royong, or mutual cooperation, which has long been a foundation of Indonesian society. At a time when the nation faces economic headwinds from geopolitical shifts, trade disputes, global slowdown, and weak domestic consumption, business groups are being called to stand at the front line of support.
“Through this instrument, the private sector can help ensure national development is financed in a more independent and sustainable way,” said Garibaldi Boy Thohir, Vice Commissioner of PT Alamtri Resources Indonesia Tbk and Chairman of the Indonesian Chamber of Commerce and Industry’s China Committee, in Jakarta on Wednesday, Aug. 27, 2025. He added that leading entrepreneurs are ready to support the bond issuance as requested by the government.
Boy emphasized that the funds would be directed to strategic projects such as waste-to-energy plants, which are urgently needed by younger generations. “When the country is in difficulty and needs the participation of all parties, the business community must be at the forefront,” he said.
- Chief Investment Officer of Danantara Pandu Sjahrir speaks in Jakarta, Tuesday, Aug. 26, 2025. Photo: Investortrust/Sivana Zahla.
Danantara’s Design for Patriot Bonds
The sovereign wealth manager Daya Anagata Nusantara Investment Management Board, or BPI Danantara, has prepared two tranches of Patriot Bonds, each worth Rp 25 trillion, with maturities of five and seven years. Coupon payments are set at a fixed 2% per year, well below prevailing market rates, positioning the instrument as a medium- to long-term financing tool underpinned by voluntary corporate participation.
“This issuance is one of the critical steps in strengthening independent national financing,” said Danantara Chief Investment Officer Pandu Sjahrir in a written statement on Tuesday, Aug. 26, 2025. “Danantara is committed to managing the state’s investment mandate with prudence, transparency, and sound governance. Every initiative is aligned with Indonesia’s long-term economic transformation and seeks to amplify the role of business in development.”
Patriot Bonds follow models used in countries such as Japan and the United States to secure stable long-term funding. They offer companies a safe investment while enabling the government to mobilize resources for sustainable growth.
- President Prabowo Subianto meets national business leaders at the Presidential Palace, Jakarta, Thursday, March 6, 2025. Photo: BPMI Setpres.
Coupon Below Market Rate
Danantara is targeting around $3.1 billion, or Rp 50 trillion, from the issuance. The 2% coupon compares with Bank Indonesia’s short-term securities (SRBI), which carry yields of 5.28% to 5.34% for maturities up to 12 months, and with government bond yields of 5.54% for two years and 6.40% for ten years as of Aug. 15, 2025.
The Patriot Bonds are set to be launched on Oct. 1, 2025, through a private placement managed by Mandiri Sekuritas.
Business leaders have signaled willingness to accept negative real returns in the short term. The lower-than-market coupon reinforces the concept of impact investing, where financial gains are partly sacrificed for wider social, economic, and environmental benefits.
“These bonds are built on voluntary participation and shared responsibility,” said Pandu. “It is a call for national enterprises to contribute to development across generations, ensuring continuity and public welfare.”
Proceeds will focus on addressing Indonesia’s structural challenges, from low levels of science and technology graduates and an aging population heading toward 2045, to the looming national waste crisis projected at 82 million tons annually. Danantara has framed the bonds as part of a broader “Indonesia Inc.” strategy, supporting projects in energy transition, waste management, and job creation in high-value sectors.
Backing from Business Leaders
President Prabowo Subianto has framed the program within Article 33 of the Constitution, which enshrines economic cooperation based on family principles, and within the “Indonesia Inc.” doctrine he frequently promotes.
At a recent meeting in the Presidential Palace, Prabowo gathered major tycoons to discuss Danantara’s management and the Patriot Bonds program. Attendees included Anthony Salim of Salim Group, Sugianto Kusuma of Agung Sedayu Group, Prajogo Pangestu of Barito Pacific represented by Agus Salim Pangestu, Franky Oesman Widjaja of Sinarmas, Dato Sri Tahir of Mayapada Group, James Riady of Lippo Group, Tomy Winata of Artha Graha Group, Hilmi Panigoro of Medco Energy, a representative from Djarum Group, and Tantowi Yahya representing Cicih Samsul Nursalim of Gajah Tunggal.
The government side was represented by Danantara CEO and Investment Minister Rosan Roeslani, along with Cabinet Secretary Teddy Indra Wijaya.
Coordinating Minister for Food Affairs Zulkifli Hasan speaks after a limited cabinet meeting with President Prabowo Subianto, Jakarta, Monday, Aug. 25, 2025. Photo: Ist.
Waste-to-Energy Priority
Coordinating Minister for Food Affairs Zulkifli Hasan underlined Prabowo’s instruction to prioritize waste-to-energy projects, aiming to resolve waste management issues that have been stalled for more than a decade.
“To accelerate implementation, Danantara has been appointed to take control. This will streamline the bureaucratic chain that has long hindered realization,” Zulkifli said after a limited economic cabinet meeting on Monday, Aug. 25, 2025.
The new framework allows contracts to flow directly from Danantara to state utility PLN with permits from the Ministry of Energy and Mineral Resources, bypassing multiple layers of local and ministerial involvement. “The President told us this must be completed within 18 months,” Zulkifli added.
- A U.S. World War II poster promoting War Bonds titled “7th War Loan, Now … All Together,” depicting soldiers raising the American flag on Iwo Jima. Photo: Ist.
Historical Parallels
The Patriot Bond concept echoes similar instruments abroad. The U.S. Treasury issued Patriot Bonds on Dec. 9, 2001, following the September 11 attacks, as a symbolic vehicle for citizens to express patriotism. Proceeds were directed to the general government account rather than specific projects.
This model mirrored “war bonds” issued during World Wars I and II, when American citizens financed the state’s wartime needs.
Indonesia’s adaptation, however, is more project-specific, aiming to fund strategic national development in line with sustainability goals.
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